AARP Is Killing Entitlement Reform

[Geee]

American Spectator:

I'm not a number. I'm not a line item on a budget. And I'm definitely not a pushover. But I am a voter. So, Washington, before you even think about cutting my Medicare and Social Security benefits, here's a number you should remember: 50 million. We are 50 million seniors who earned our benefits, and you will be hearing from us -- today and on Election Day.

So blusters the retirement-aged gentleman in the AARP's new TV ad.

AARP is not just taking a partisan gamble with this brazen threat against reformers, most of whom are Republicans; they're threatening our whole nation's financial future. The organization makes an enormous amount of money from selling insurance policies that are desirable to its members precisely because the current system is as it is. Thus, the AARP has a multi-billion dollar financial interest that is separate from, and arguably contrary to, the interests of its members.

Indeed, earlier this year the House Ways and Means Health Subcommittee held a hearing on whether the overlap between AARP's insurance business and its lobbying and advocacy efforts is appropriate: "there is good reason to question whether AARP is primarily looking out for seniors or just its own bottom line." A report by Republican congressmen Wally Herger (CA) and Dave Reichert (WA) entitled "Behind the Veil: The AARP America Doesn't Know" is a damning indictment of the organization's inherent conflicts of interest, including:

• "AARP is in fact a large, complex and sophisticated organization with over $2.2 billion in total assets and had revenues in excess of $1.4 billion in 2009 alone."

• "AARP is one of the nation's largest insurance companies and by far the largest provider of Medicare plans to seniors."

• "AARP is also one of the most powerful and active lobbying groups (in terms of dollars spent) in the country."

• "The missions of [AARP's subsidiaries] appear in direct conflict with one another and, as such, it is very difficult to determine which interests are being represented -- those of the 'non-profit' or the 'for-profit' arm of AARP."

• "The Democrats' health care law, which AARP strongly endorsed, could result in a windfall for AARP that exceeds over $1 billion during the next 10 years."